4 Bookkeeping

Bookkeeping
So what goes on the accounting and bookkeeping departments? What do these
people do on a daily basis?
Well, one thing they do that's terribly important to everyone working
there is Payroll. All the salaries and taxes earned and paid by every
employee every pay period have to be recorded. The payroll department has
to ensure that the appropriate federal, state and local taxes are being
deducted. The pay stub attached to your paycheck records these taxes.
They usually include income tax, social security taxes pous employment
taxes that have to be paid to federal and state government. Other
deductions include personal ones, such as for retirement, vacation, sick
pay or medical benefits. It's a critical function. Some companies have
their own payroll departments; others outsource it to specialists.
The accounting department receives and records any payments or cash
received from customers or clients of the business or service. The
accounting department has to make sure that the money is sourced
accurately and deposited in the appropriate accounts. They also manage
where the money goes; how much of it is kept on-hand for areas such as
payroll, or how much of it goes out to pay what the company owes its
banks, vendors and other obligations. Some should also be invested.
The other side of the receivables business is the payables area, or cash
disbursements. A company writes a lot of checks during the course of year
to pay for purchases, supplies, salaries, taxes, loans and services. The
accounting department prepares all these checks and records to whom they
were disbursed, how much and for what. Accounting departments also keep
track of purchase orders placed for inventory, such as products that will
be sold to customers or clients. They also keep track of assets such as a
business's property and equipment. This can include the office building,
furniture, computers, even the smallest items such as pencils and pens.